The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:
A)Jobs Overhead Expense.
B)Cost of Goods Sold.
C)Finished Goods Inventory.
D)Indirect Labor.
E)Work in Process Inventory.

Question

Quizplus · Accepted Answer

The cost applied to a job during a period is initially recorded in the Factory Overhead account as a credit, indicating an increase in the overhead balance. The debit entry, on the other hand, is recorded in the Work in Process Inventory account, representing an increase in the value of the work in progress. Therefore, the correct option is E).

The Overhead Cost Applied to a Job During a Period